Cattle futures settled mixed on Friday with light trade amid holiday-trimmed trading hours for futures and equities.
Cash fed cattle trade for the week was generally steady to a touch higher, with live sales at $120.00 to $120.50/cwt., except for $118 in the Southern Plains. Dressed trade was steady to $2 higher than the previous week at $190.
Live Cattle futures closed an average 50¢ lower through the front five contracts (5¢ to 90¢ lower) and then 2¢ to 10¢ higher.
Feeder Cattle futures closed an average of 68¢ higher.
Choice boxed beef cutout value was $1.98 higher Friday afternoon at $210.99/cwt. Select was 79¢ lower at $187.85.
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Major U.S. financial indices closed higher on Thursday, as investors apparently are betting on strong holiday shopping.
The Dow Jones Industrial Average closed 31 points higher. The S&P 500 closed 5 points higher. The NASDAQ closed 21 points higher.
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“Fed carcass weights continue to inch toward a seasonal peak but remain well below year-ago levels,” says Derrell Peel, Extension livestock marketing specialist at Oklahoma State University, in his weekly market comments. “The latest steer carcass weights were 902 lbs. compared to 913 lbs. the same week last year. Heifer carcass weights are currently 833 lbs., which is 9 lbs. lighter”
Although beef production is 4.1% more than last year (year to date), Peel points out the year-to-year increase is declining.
“In the last eight weeks, beef production is up only 1.8% compared to the same period last year,” Peel says. “…Year to date steer and heifer slaughter is up 5.5% year over year with steer slaughter up 2.5% and heifer slaughter up 12.0%. However, in the last eight weeks, steer and heifer slaughter is up just 4.4% year over year. So far this year, cow slaughter is up 7.1% led by a 10.4% year-over-year increase in beef cow slaughter and a 4.2% increase in dairy cow slaughter.”